Todos os Mercados – Topic 1 Review Questions

Unit 1.1 – Introduction to Business Management

1. Outline the four types of factors of production with reference to Todos os Mercados.
2. Explain how Todos os Mercados adds value.
3. Explain the importance of the the four main functional business areas in regards to how Todos os
Mercados adds value.
4. Outline three processes that are crucial to how Todos os Mercados adds value.
5. Explain how adding value relates to how Todos os Mercados makes profit.
6. Outline is the opportunity cost to Henri Trouvé of studying for his MBA (Masters of Business
Administration).
7. Identify the business sector that Todos os Mercados operates in.
8. Outline the chain of production in Todos os Mercados’ business.
9. Analyze whether Todos os Mercados should be considered an innovative company.

Unit 1.2 – Types of Organizations

1. Explain the advantages and advantages to Henri Trouvé’s father of setting up his hardware
business as a sole trader [line 5]. How might the disadvantages of a sole trader have contributed
to the company’s eventual failure and liquidation?
2. Todos os Mercados is a public limited company [line 11]. Outline the advantages and
disadvantages of this structure to a multinational company like Todos os Mercados.
3. Explain the process that Todos os Mercados likely undertook to become a public limited
company.
4. How did the shareholders of Todos os Mercados invest in the company? What do they expect
from their investment?

Unit 1.3 – Organizational Objectives

1. Describe Todos os Mercados’ mission statement.

2. Explain the importance of Todos os Mercados’ mission statement for both internal and external
audiences.
3. Explain how that mission could influence objectives in four functional areas (Human Resources,
Marketing, Operations and Finance).
4. Define SMART objective for Todos os Mercados in each of the four functional areas.
5. Explain how strategic and tactical objectives might differ in Todos os Mercados.
6. Discuss what could cause Todos os Mercados to change its vision statement and strategic
objectives.
7. Construct a SWOT analysis for Todos or Mercados.
8. Evaluate the potential impact on Todos os Mercados of improving its record regarding corporate
social responsibility (CSR).

Unit 1.4 – Stakeholders

1. Outline the priorities of the various internal and external stakeholders of Todos os Mercados.
2. Explain two potential stakeholder conflicts in Todos os Mercados.
3. Assume that Todos os Mercados is considering no longer promoting to management positions
internally, instead bringing experienced managers in from Mexico. Create a stakeholder map for
this decision. (Note: this is hypothetical, not based on the case.)

Unit 1.5 – External Environment

1. Create a STEEPLE analysis for Todos os Mercados.

2. Explain how Todos os Mercados management can use the STEEPLE analysis.
 3. Outline how Todos os Mercados could be affected by the following economic factors:
a. Increased unemployment in France
b. Slower economic growth in France
c. High and/or volatile inflation in France
d. Higher interest rates
e. A stronger Euro versus the Mexican Peso
f. If the French government eliminates certain protectionist measures
4. If France is currently in a recession, explain what actions Todos os Mercados can take to
maintain profitability of gain competitive advantage.

Unit 1.6 – Growth and Evolution

1. Identify four ways that Todos os Mercados’ size can be measured, and outline the value of each
method (i.e., when or for whome might each be most appropriate).
2. Discuss how Todos os Mercados might experience both economies of scale and diseconomies of
scale.
3. What non-cost benefits might Todos os Mercados’ large scale provide?
4. If Todos os Mercados decides to expand through horizontal integration, what would it do? What
would be the advantages to the company?
5. What would it do if it instead decided to expand through backwards vertical integration? What
would be the advantages to the company?
6. Explain whether forward vertical integration make sense for Todos or Mercados.
7. Explain one way that Todos os Mercados could expand via conglomeration.

Todos os Mercados is planning to expand into Germany.

8. Evaluate the decision to pursue this expansion organically (rather than via an external growth
strategy).
9. Management redecided and will instead enter the German market via an external growth strategy.
Explain the advantages and disadvantages of using the following growth options: i) acquiring a
German supermarket company, ii) entering into a joint venture with a German supermarket
company or iii) granting a license to another company to open Todos os Mercados franchises.
10. If Todos os Mercados expands via acquiring a German company, what synergies might it hope to
achieve?

11. Evaluate whether the entry of a multinational company (Todos os Mercados) has been beneficial
to the St. Laurent region.
12. Explain which quadrant of the Ansoff Matrix strategies would reflect Todos os Mercados’ entry
into the French market. What strategies could it pursue that would reflect the other three
quadrants?

(HL) Unit 1.7 – Decision Tools

Under what circumstances (i.e., for what purpose) might Todos os Mercados management use each of
the following decision tools:
1. STEEPLE analysis
2. SWOT analysis
3. Ansoff matrix
4. Break-even analysis
5. Payback period, ARR and DCF
6. Force field analysis
7. Decision tree
8. Ishakawa’s fishbone
9. GANT chart